HANNOVER/HAMBURG, Germany — Continental AG has said it intends to acquire Phoenix AG of Hamburg, Germany. Continental will launch a public tender offer of EUR 15 per share (approximately $18 per share) for all outstanding shares of Phoenix AG.
Officials at Continental AG said the company views the proposed takeover as a significant step in its strategy of further developing its ContiTech division, a leading global supplier of technical elastomers.
“The integration of Phoenix into the Continental Group will substantially enhance the combined entity’s competitiveness and long-term growth prospects,” said Manfred Wennemer, CEO of Continental.
We expect the combination of ContiTech and Phoenix to create synergies of approximately EUR 30 million (approximately $37 million) per year,” said Wennemer. “Continental intends to analyze in detail the business opportunities arising from the acquisition, together with the management board of Phoenix.
Claas Daun, the major shareholder of Phoenix AG and chairman of the company’s supervisory board, has already committed to accept the takeover offer for his shareholding in Phoenix AG (22.28 percent). An agreement has also been reached with the management board of WestLB regarding the purchase of their shareholding (14.83 percent) in Phoenix AG. The supervisory board of WestLB is expected to give its approval within the next few days, said Continental.
Continental is a leading supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers. In 2002 the corporation realized sales of EUR 11.4 billion (approximately $13.8 billion).
For more information, go to: www.conti-online.com.
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